Startup Funding Espresso Illusory Truth Effect
Illusory Truth Effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The illusory truth effect is defined by Wikipedia as the tendency to believe that a statement is true if it is easier to process, or if it has been stated multiple times, regardless of its actual veracity.\xa0 In a startup pitch, facts repeated several times can increase believability. Repetition reinforces a belief because it becomes easier to remember. The easier it is to take in the more likely the investor will believe it. This is how advertising works. To overcome the illusory truth effect, review the proposed facts. If the facts are not correct, then repeat it back but with the correct information such as The market size is X, not Y, so let\u2019s use X in our decisions. Don\u2019t repeat the incorrect information but instead lead with the correct information in all statements such as Since the market is X, we can estimate the maximum revenue as Y to determine if that will lead to a sufficient profit. It\u2019s important to verify the data offered as facts and not assume they are true. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .